4 ms·

To be accurate, it was the marginal tax rate that ended up 102%, not the total tax rate. Still, of course, that was completely preposterous and the current syst

To be accurate, it was the marginal tax rate that ended up 102%, not the total tax rate. Still, of course, that was completely preposterous and the current system is very different, though still high-tax in international comparisons.

atemerev 9y ago
It still does mean that she had to pay more than she earned (and so did I, one year — long story). If you call someone part of the payment "tax", and some other "social security payments" or "healthcare pool contributions", it still doesn't change the equation. The difference is purely syntactic.
- StavrosK 9y ago
  That's happening right now in Greece: A company that makes 100k Euro in its first year will pay 110k in taxes, as every company and sole trader is required to pre-pay next year's tax every year.
  - Cyph0n 9y ago
    That's crazy. So are small businesses expected to take out a loan to pre-pay taxes?
    - StavrosK 9y ago
      I guess they're expected to go bust, really. Who knows, the small (and large, really) business sector is completely ruined, the market has been crippled by these tax changes. The tax code gets a large overhaul every year, which instills great uncertainty to anyone thinking of starting a business, and many taxes are retroactive. For example, I've had to pay taxes for funds that were formed in 2016, but the tax starts in 2013, which means that if you completely paid all your taxes for 2015, in 2016 you suddenly owe three years of a tax that was voted in just that year.
- dkural 9y ago
  While I agree that 102% marginal rate is ridiculous, you are incorrect, she didn't have to pay more than her total income.
- BoiledCabbage 9y ago
  > It still does mean that she had to pay more than she earned No it does not mean that. It's a marginal tax rate, not an effective tax rate.
  - 1123581321 9y ago
    A marginal tax rate of 102% will become an effective tax rate of 100% when the amount above the margin line is 50 times greater than the post-taxed portion below the line. I'm not familiar with the author's situation but standard marginal rate assurances stop applying when the tax rate exceeds 100%.
    - BoiledCabbage 9y ago
      Completely agreed, but again not a case of paying more than your income (it'd be paying your full income), and also, not what happened in this case.

atemerev 9y ago

It still does mean that she had to pay more than she earned (and so did I, one year — long story). If you call someone part of the payment "tax", and some other "social security payments" or "healthcare pool contributions", it still doesn't change the equation. The difference is purely syntactic.

StavrosK 9y ago
That's happening right now in Greece: A company that makes 100k Euro in its first year will pay 110k in taxes, as every company and sole trader is required to pre-pay next year's tax every year.
- Cyph0n 9y ago
  That's crazy. So are small businesses expected to take out a loan to pre-pay taxes?
  - StavrosK 9y ago
    I guess they're expected to go bust, really. Who knows, the small (and large, really) business sector is completely ruined, the market has been crippled by these tax changes. The tax code gets a large overhaul every year, which instills great uncertainty to anyone thinking of starting a business, and many taxes are retroactive. For example, I've had to pay taxes for funds that were formed in 2016, but the tax starts in 2013, which means that if you completely paid all your taxes for 2015, in 2016 you suddenly owe three years of a tax that was voted in just that year.
dkural 9y ago
While I agree that 102% marginal rate is ridiculous, you are incorrect, she didn't have to pay more than her total income.
BoiledCabbage 9y ago
> It still does mean that she had to pay more than she earned No it does not mean that. It's a marginal tax rate, not an effective tax rate.
- 1123581321 9y ago
  A marginal tax rate of 102% will become an effective tax rate of 100% when the amount above the margin line is 50 times greater than the post-taxed portion below the line. I'm not familiar with the author's situation but standard marginal rate assurances stop applying when the tax rate exceeds 100%.
  - BoiledCabbage 9y ago
    Completely agreed, but again not a case of paying more than your income (it'd be paying your full income), and also, not what happened in this case.